By Waning demand for treasury bills is becoming increasingly apparent, as the latest data from the Bank of Ghana shows that the government has once again fallen short of its target by a significant GH¢2.31 billion.
In the most recent auction, the government accepted bids totaling GH¢3.67 billion for its short-term instruments, missing the target of GH¢5.98 billion.
According to the latest auction results, this led to an undersubscription of approximately 38.5% in the sale of these short-term instruments.
The amounts raised for the 91, 182, and 364-day treasury bills were GH¢2,911.51 million, GH¢572 million, and GH¢189 million, respectively.
Following a series of previous increases, yields on these instruments saw slight declines of 18, 12, and 16 basis points, settling at 25.46%, 26.80%, and 28.52% week-on-week, respectively.
Market analysts attribute the reversal in T-bill yields to a rational response by investors following the Bank of Ghana’s recent decision to lower the 56-day yield from 29% to 27%.
This adjustment is consistent with the Monetary Policy Committee’s significant reduction of the policy rate from 29% to 27%.
Looking ahead, the treasury has set a borrowing target of GH¢4.5 billion for the next T-bill auction.
This indicates that the government is actively seeking to stimulate interest and restore market confidence amid declining demand.
